Traffic, Ad Increases Boost Launch Revenues

An increase in site traffic and major additions to its list of advertisers helped to push Launch Media Inc.'s net revenues to $7.8 million for the second quarter of 2000 - up 100 percent from pro forma net revenues of $3.9 million for the second quarter of 1999.

Launch's revenue mix for the quarter was 65 percent from advertisingand transaction fees, 28 percent from content licensing, and 7 percent from subscription and other. The EBITDA loss for the 2000 second quarter was $8.5 million, or $0.63 per share, compared to a pro forma EBITDA loss of $6.8 million, or $0.59 per share, for the same three-month period in 1999.

During the quarter, Launch brought on 34 new advertisers, including IBM, MCI, Taco Bell, Starburst, and Phillips Electronics, bringing the total to 75 unique advertisers for the quarter.

Launch continued to attract a significant number of new users in the second quarter, with its registered user base growing to 4.3 million as of June 30, 2000, compared to 3.5 million as of March 31, 2000. Unique visitors to all Launch properties increased to 8 million in June 2000, up from 6.6 million in March 2000.

"Our 100 percent revenue growth over the second quarter of last year reflects our ability to effectively execute our business model, most notably, increasing the number of our registered users," said CEO David Goldberg. "In turn, we have been able to convert this increased traffic into substantial advertising sponsorships."